Projects downloaded from svn and packaged for distribution have Subversion .svn folders present in the builds. This is the case building through both titanium.py script or from the "publish" option from Titanium Studio.
1. Create a new project in Titanium Studio.
2. Commit that project to a Subversion repository.
3. Delete the project from Titanium Studio.
4. Checkout the project from Subversion.
5. Import the project into Titanium Studio.
6. Create a distribution build.
Now, view the contents of the bundle. There are Subversion folders (.svn) present in the distribution application.